Come here often? Make XFINITY.com your homepage » close

close

Your XFINITY Connect session has timed out due to inactivity. Click here to go back close

Forbes: The New Rules of Money

#3 Low P/E Doesn't Equal Value

Many adherents to fundamental analysis and value stock investing seek stocks with below-average price/earnings multiples and price-to-book values. These “accounting-dependent” fundamentals proved to be traps during the financial crisis, when liquidity wreaked havoc on asset values and earnings. Cheap stocks, including many financials—-ranging from Fannie Mae to Washington Mutual—-became a recipe for disaster, and many still languish today.

(Photo via Forbes)

More from Forbes:
See More of the New Rules Of Money
20 Stocks Poised To Pay A Special Dividend
Cities Where Home Sales Are On Fire



The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.

Ad Info - Ad Feedback

Ad Info - Ad Feedback

Loading...